Danish Games Industry Grows and Consolidates

New numbers show a 27 % revenue growth for the Danish games industry last year, while the number of companies remains the same.

The latest years have shown an almost continuous growth for the Danish games industry across both revenue, export value, number of employees, and number of companies. But the latest numbers, released just days ago by Producentforeningen, shows that while revenue and export numbers are still going up, the number of employees and companies has remained fairly static, suggesting an increased consolidation in the Danish games industry.

Revenue grew from $101 million in 2012 to $140 million in 2013. A growth of 27 % in just one year. And export grew an impressive 61 % from $70 million to $113 million between 2012 and 2013. The number of both employees and companies, however, remained fairly static at 139 companies and the equivalent of 721 full time positioned employees, suggesting a more effective games industry, which has been able to generate more revenue and export per employee than ever before in the history of the Danish games industry.

 

Jan Neiiendam

Jan Neiiendam

Chief Project Officer at Interactive Denmark, Jan Neiiendam, points to the increased consolidation of the Danish developers and a rise in focus on the business side of things, rather than the ambitions of ‘just making a game’, as an explanation of the recent numbers.

They have redirected their focus to try and create revenue from their productions, rather than just testing their abilities.

According to Neiindam, there has been an increased specialization happening at some of the more established companies, which has helped stengthen their position in the market. Something that Interactive Denmark has seen firsthand in their newly started SOLID business development program, where a lot of the developers have been focusing on exactly this.

Despite the new numbers, the Danish industry still pales compared to Sweden’s yearly revenue of more than $810 million and Finland’s €1.87 billion. Something that Neiiendam clearly acknowledges,”We need two or three of the really big companies, who can create a massive growth in revenue, like Supercell and Mojang. The companies behind Subway Surfers have contributed greatly to the Danish growth, but they alone cannot pull up the whole of the business to a billion revenue like Finland and Sweden Has.”

 

Neiiendam does believe, however, that a business of the same size as in Finland or Sweden could be achieved over time with the appropriate support from the government. “Finland is now reaping the benefits of how their government back in 2000 decided to support the industry,” he says.

Unfortunately, we have had to struggle a bit more here in Denmark. But the talent, will to create, and the basic health of the companies is stronger than ever.

Since 2009, the Danish Games industry has grown 119 % and now rivals film and television as the biggest sector within the field of audiovisual businesses in Denmark.

Jesper K. Kristiansen

Multi-passionate game developer and journalist. Has been writing about the Danish games industry for more than ten years, and creating audio design for both Danish and International games for almost as long.

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